Investor Glossary-overvaluedInvestor Glossary-overvaluedInvestor Glossary-overvaluedInvestor Glossary-overvaluedInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Overvalued

The HTML to link to this page
 

A stock is overvalued if its current price exceeds the intrinsic value of the stock. A stock perceived by the market as being overvalued is not likely to appreciate in value until it is no longer perceived as being overvalued. There are many ways to determine if a stock is overvalued. Many investors look at a stock's price earnings ratio (PE ratio) when determining an overvalued condition. A high PE in relation to its historic PE ratio may indicate an overvalued condition, or a high PE in relation to peer stocks can also indicate an overvalued stock. Other common measures of an overvalued stock include a comparison of stock price against a company's cash flow, projected earnings, book value, dividend ratio, etc.



Rate this overvalued definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: LIBOR, 1035 exchange, margin rate, liquidity ratio, cancelled check, debt service coverage, open position, 401a, Zero Cost Collar, risk management, wholly-owned subsidiary, phantom income, FTSE, current ratio, 1031 exchange, reverse mortgage, diluted share, real GDP, class C shares, annual return, command economy, ex-dividend, VIX, option premium, FICO score, implied volatility, retained earnings, dividends payable, irrevocable trust, covered put, balance sheet, quality assurance, 144a, deferred revenue, deferred tax, inflation, labor relations, required rate of return, Key Rate Duration, ex-dividend date, stock market close, limit order, per diem, stock split, EBITDA, in escrow, APR, average price per share, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use